The competition for Penang’s Mutiara Line light rail transit systems package has intensified, with CIMB Research describing the bidding landscape as marked by stiff rivalry and aggressive lobbying among seven consortia.
The systems package covers signalling, rolling stock and track works on a design-and-build basis, and is widely regarded as one of the most closely watched transport contracts in Malaysia.
MRT Corp has opted for an e-bidding exercise after issuing numerous clarifications since June 2025, which led to successive refinements in the tender requirements. The tender was first called in December 2024 and subsequently revised through several deadline extensions.
Initial requirements demanded a higher proportion of local content for rolling stock and the establishment of a domestic assembly plant for train car sets. In August 2025, ahead of the final tender closing the following month, MRT Corp issued an addendum revising the rolling stock design from four-car to three-car train sets.
Local bidders include Gamuda Bhd, MMC Group, YTL Group, Malaysian Resources Corp Bhd (MRCB), a joint venture between WCT Holdings Bhd and Lion Pacific Sdn Bhd, and a partnership between Dhaya Maju Infrastructure Asia and Berjaya Rail.
Most bidders have teamed up with Chinese partners, with the exception of MMC, which has partnered with Hyundai Rotem for rolling stock and Japan’s Hitachi for signalling works.
The WCT-Lion Pacific joint venture submitted the lowest bid at RM2.7bil, with other bidders also reportedly lowering their offers below the RM3bil mark.
Notably, MRT Corp’s reverse e-bidding exercise means the winner may not necessarily be the one that submitted the lowest initial bid, as the process aims to establish the most competitive price under the project.
CIMB Research noted that both Gamuda and MRCB have experience handling large-scale metro works in the Klang Valley as lead contractors for earlier MRT and LRT 3 projects. Gamuda has also demonstrated capability overseas through tunnelling and metro contracts in Taiwan, Singapore and Australia.
A fund manager told StarBiz that the reverse e-bidding format may squeeze margins, but not to the point of being unworkable. The final margin impact depends on bidder discipline and how much MRT Corp prioritises execution strength over the cheapest headline number, the fund manager added.
Source: The Star
